Key tax accounting considerations of the French tax law change on tax losses and capital gains on shares

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Tax Accounting Insights

As outlined in our September 13, 2011 WNTS European Tax Newsalert, the French parliament introduced significant changes to the treatment of losses as well as the taxation of capital gains on shares.

The Amended Finance Act for 2011, which included the aforementioned changes, was passed by the French Assemblee nationale and Senat on September 7 and 8, 2011. The new rules were published in the official gazette on September 20, 2011. The law is officially enacted on the day following this publication. Thus, the tax law changes were substantively enacted on September 8, 2011 (required threshold for accounting under IFRS) and enacted on September 21, 2011 (required threshold for accounting under US GAAP).

Outlined below is an overview of the French changes and related tax accounting and reporting considerations. For a more detailed explanation of the tax law changes please refer to the September 13, 2011 WNTS European Tax Newsalert.